IMF: Growth in Sub-Saharan Countries to Pick Up in 2014

International Monetary Fund says growth should rise to 6% in 2014

Antoinette Sayeh, Director of the IMF’s Africa Department said unpredictable events such as weather and political events posed less of a risk at the regional level than they might to individual countries. This comes of the back of an announcement by the IMF that they expect Sub-Saharan African growth to increase to 6% in 2014. Sayeh noted…

It is heartening to note that sub-Saharan Africa’s economies have generally maintained a strong pace despite some tensions observed in the external environment, including somewhat slower growth in emerging market economies… This is a reflection of continued sound macroeconomic policies as well as robust domestic demand, in particular investment in infrastructure and productive capacity.

A further weakening in emerging markets—including some of sub-Saharan Africa’s new economic partners—or in advanced economies could affect sub-Saharan Africa’s prospects for growth, mostly through commodity price declines. Nevertheless, a downside scenario that we simulated suggests that large—but plausible—temporary declines in international commodity prices would not derail growth at the regional level. That said, growth and external current account balances could be significantly affected in some resource-intensive countries.